GBPUSD-- A potential 2-way inside bar tradeGBPUSD got rocked after their economic numbers, and here is a great example for 2-way inside bar trade.
The 30min inside bar comes after the huge movement and it very extended, while it gave the market time to think again"are the numbers really that bad?".
Therefore, whether direction it broke provide potential trading setup.
If it breaks to the downside, the downtrend is probably to continue and the trade is to short the breakdown and give the out to 1 pip above the inside bar high;
If it breaks to the upside, as it's very EXTENDED that the 21EMA is still 40 pips away, so to long the breakout and try to play with the price correction is another idea, and the out will be 1 pip below inside bar low.
Let's see which way it breaks an goes!
Insidebarsetup
GBPCAD DAILY INSIDE BAR SHORTTraders!
We have got pretty interesting trade here on the GBPCAD Daily Chart.
It is Inside Bar Price Action Formation. This signal tells us that we can sell with a Stop Order On The BREAKOUT POINT of that formation which is @ around 1.6403 level. This inside bar is completed at a key resistance level (the upper red one line), and that means a signal for a counter-trend trade
Since the Mother Bar of that Formation is quite big here, we can put our Stop Loss on a 50% retracement of the mother bar.
Good luck!